What a wild week. Looking at the weekly charts, it just looks like another lower week, but that was far from the truth. Most coins started the week on the sell, with Monday’s session setting new weekly lows. A lot of attention was on Thursday’s FOMC meeting. US policy regarding rates due to inflation has been a key driver, and this meeting was no exception. The FOMC statement surprised the market as the tone looked to take a less aggressive tone.
Risk markets jumped after the statement. Gains were across the boards as FX stocks and Crypto all rallied sharply. The USD plunged, threatening to break weeks of gains. Signs looked good on Thursday as daily candles on several coins looked to show engulfing reversal bars.
As we regularly see in the markets, you can never get married to anything. The situation changed dramatically on Friday as fears returned around inflation and policy, and gains we watched evaporated into heavy selling that has carried on. However, the question remains – is this reversal a new confirmation of a leg lower?